Guide to Secured Loans

Here is a useful guide to secured loans. A secured loan is a loan that a lender provides on the understanding that a property is secured against the loan. Secured loans are also commonly known as a homeowner loan, home loan or home owner loan.

Secured loans can be a sensible way to borrow for certain expensive items, such as home improvements or debt consolidation.

This type of loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because the lender has some security to offset against the loan should you default on the repayments.

A secured loan enables homeowners to borrow capital and offset the risk against the value of their property. This means that anyone taking out a secured loan is effectively using their property to guarantee the loan. If the borrower fails with the repayments, there could be a possibility their home is at risk.

Because the loan is secured against your home, the interest rate should be cheaper than an unsecured loan and you may be able to borrow more. One of the major benefits of a secured loan is that the interest rate charged by the lender tends to be significantly lower than that of an unsecured loan.

A lower interest rate, which is calculated as the annual percentage rate (APR), means that more of your monthly repayment is going towards repaying the original loan, rather than being absorbed by the interest you have incurred along the way. The interest rate for your secured loan will depend on many factors such as the amount of loan requested, the terms of the loan and your personal details.

Also, you can cut your monthly payments by stretching the loan over a longer term anywhere between five and twenty-five years.

A secured loan is the perfect way to borrow between £5,000 and £75,000 at a low rate. Obviously the better your credit history and individual circumstances will affect the rate which is offered to you. You can be approved for a secured loan even if you have mortgage arrears, retired or have county court judgements.

The consequences of not being able to keep up your payments are much more serious than with an unsecured loan. The danger with a secured loan is if you are unable to keep up the repayments on your loan your home which secured the loan could be in danger. Should you fall into difficulties or are unable to make the repayments on your loan you will sooner or later lose your home.

This is why before taking out a secured loan it is vital that you consider your debt problems seriously and make sure that you have budgeted fully and can cover the loan repayments.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Debunking the FAFSA Myth

With the plethora of big-business entities jockeying for the money... Read More

What?s All the Hype about Omni Military Loans?

The average person some time in their adult lives will... Read More

Bad Credit Payday or Cash Advance Loans - No Credit Check Required

If you are in need of extra cash until pay... Read More

Fast Cash Now Easier Than Ever, but at a Price?

Because of the Internet, quick payday loans are faster than... Read More

Loan Options for College Students

You just finished high school and realize you have two... Read More

UK Student Loans Explained

Student loans seem to be the only feasible way out... Read More

Fast Cash Advance Payday Loans - Convenient to Use Online

Online cash advance companies offer a convenient and speedy application... Read More

Alternative Ways to Avoid Payday Loan

If you spend more than you earn on a regular... Read More

Benefits of a Bridging Loan

A bridging loan has many benefits, some of which are... Read More

Finding the Secured Homeowner Loan for You

If you've been thinking of getting a secured homeowner loan,... Read More

What is an Auto Loan?

An Auto loan is basically another name for a car... Read More

Holiday Personal Loans ? When the Traveller Within You Wants to Break Free

If you are a traveller by heart then perhaps every... Read More

Personal Loans for Unemployed ? Liberating You from the Tangles of Unemployment

Like most of the contingencies (the after effects of unemployment... Read More

What is a Secured Loan?

A secured loan is simply a loan that uses your... Read More

Bridge Loan

A buyer of a new home may find himself or... Read More

Shopping for a Secured Personal Loan

If you find yourself looking for a loan, you'll likely... Read More

Quick Cash Advance Payday Loan - Get it Free or Cheap

If you are looking at getting a payday loan or... Read More

No Faxing Hassle-Free Payday Loans Can Be Yours

No faxing payday loans are the wave of the future.... Read More

What is a Title Loan?

A title loan is a loan of money secured by... Read More

Applying for a Payday or Cash Advance Loan Online

Applying for a payday loan online is a quick and... Read More

First Time Buyer Mortgage ?Key to your First Home

Living in a rented apartment since long. Ever thought of... Read More

No Credit Car Loans - Even With No Credit History, You Can Still Get Approved

Even it you have no credit history, you can still... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

Why Choose a Personal Loan?

Are you wondering why choose a personal loan? One of... Read More

Business Credit Scoring: Is It a Killer Application or Application Killer?

In his 1968 seminal novel, 2001: A Space Odyssey, Arthur... Read More

Understanding Secured Loans

A secured loan is any loan that is secured on... Read More

How to Get a Business Loan in Five Steps

Need funds to startup or expand your business? Follow these... Read More

Bad, Credit, Student, Loans - Disjointed They Don?t Make Sense - Join Them and See the Possibilities

The day you stop learning is the day when you... Read More

Bad Credit Secured Personal Loans are Like Desserts-Last Course/Best Recourse for Impaired Credit

Plato said, 'We can easily forgive a child who is... Read More

A Renter in Debt? Take Out a Bad Credit Personal Loan

On average, homeowner households earn 95% more than renting households... Read More

A Guide to Finding Home Owner Loans

If you're in the process of trying to find home... Read More

Online Payday Loans Offer Quick or Instant Approval For a Fast Cash Loan

Online payday loans companies offer quick approval with their online... Read More

How to Find a Loan or Mortgage with Bad Credit

If you have bad credit and you are trying to... Read More